Last week’s review of the macro market indicators suggested heading into November Options Expiration and the last week before the shortened Thanksgiving holiday, the Equity market had again shown an inability to make new highs, without giving up the positive longer term perspective.
Elsewhere looked for gold to continue its downtrend, but with a possible short term reversal while crude oil worked lower. The US Dollar Index looked to continue higher while US Treasuries were biased lower, but also might see a short term reversal. The Shanghai Composite was building energy for another leg higher while Emerging Markets were biased to the downside again.
Volatility looked to remain above the lower range, making things difficult for equities, but looked for a pullback after the spike in short order. The equity index ETFs N:SPY, N:IWM and O:QQQ, all looked better to the downside this week.
The week played out with gold probing lower but slowing the fall while crude oil consolidates against support lower. The US dollar moved slightly higher finding resistance while Treasuries did bounce higher. The Shanghai Composite moved sideways around 3600, while Emerging Markets rebounded higher.
Volatility reversed the move higher from last week, easing the headwinds to equities. The Equity Index ETFs all responded by finding a bottom Monday and rising all week.
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